Famous investor George Soros warned the other day of very severe consequences if the Euro wasn’t saved.
“It seems to me that one still doesn’t understand what would happen if the euro collapsed,” Soros told the Swiss magazine in an e-mailed pre-release of tomorrow’s edition. “It would lead to a banking crisis that would be totally out of control.”
He even used the term “new Great Depression”. It sounds serious, especially since many have come out and said that the cost of saving the Euro is too high. Some say the chances of the Euro’s survival is 50-50, and that the Euro-bond plan would be nothing more than a band-aid.
So while everyone worries about a Great Depression 2.0, we overlook the fundamental reasons why the economy remains so weak.